Paga, a Nigerian money-transfer service that was launched in February 2011, has received new equity investments both from its previous investor, Goodwell West Africa Microfinance Development Company, a branch of Dutch company Goodwell Investment, and from new investors Adlevo Capital, a Mauritius-based private equity fund manager; Omidyar Network, a US-based nonprofit investment firm; Acumen Fund, a US nonprofit venture fund; and Capricorn Investment Group, a privately owned, US-based investment manager. Details such as the size of the investments are not available.
Paga’s founder and CEO, Tayo Oviosu said, “The business opportunity for Paga is huge, and it follows that the capital requirement to achieve our mission is also significant… This investment will enable Paga to scale our operations across Nigeria and allow us to build upon our front-runner position.”
Since its launch in 2011, Paga has acquired approximately 125,000 users and processed approximately 276,000 transactions with a total value of NGN 2.6 billion (USD 16.1 million). As of 2012, the US-based nonprofit Microfinance Information Exchange (MIX) indicated on its website that Goodwell Investments reported to fund assets of USD 70 million and funds allocated to microfinance investment of USD 16 million.
By Jaime Fellers, Research Associate
About Goodwell Investments:
Goodwell Investments, which was established in 2006 in the Netherlands, co-manages Goodwell West Africa Microfinance Development Company, a Dutch social investment company that mobilizes capital for microfinance institutions (MFIs), and 10 other groups in Africa and India as well as providing advisory services worldwide. As of 2012, the US-based nonprofit Microfinance Information Exchange (MIX) indicates on its website that Goodwell Investment has fund assets of USD 70 million, of which USD 16 million is allocated to microfinance.
About Paga:
Since its launch in 2011, Paga has acquired approximately 125,000 users and processed approximately 276,000 transactions worth a total of NGN 2.6 billion (USD 16.1 million). Its goal is to provide financial services to all Nigerians, especially the estimated 80 percent of the population that is un-banked or under-banked. With internet access, a mobile phone or through one of the 850 agents in Paga’s network, clients are able to “send cash to anyone in Nigeria, buy or send airtime credit, pay bills, pay both online and physical retail stores, and perform a variety of other transactions” according to a press release from Paga.
Sources and Additional Resources:
Paga Blog: “Paga Secures New Investments to Scale Money Transfer Service Nationwide”, by Paga, July 2, 2012, http://pagablog.com/2012/07/02/paga-secures-new-investments-to-scale-money-transfer-service-nationwide/
MicroCapital Story: “MICROCAPITAL BRIEF: Mobile Money Service Paga Recieves $2m Grant from Enhancing Financial Innovation and Access (EFInA) to Promote Financial Inclusion in Nigeria”, by Kristha Abores, March 22, 2012, https://www.microcapital.org/microcapital-brief-mobile-money-service-paga-receives-2m-grant-from-enhancing-financial-innovation-and-access-efina-to-promote-financial-inclusion-in-nigeria/
MicroCapital Story: “MicroCapital Brief: Goodwell West Africa Invests in Nigerian Mobile Money Service, Paga”, by Alex Pattee, May 9, 2012, https://www.microcapital.org/microcapital-brief-goodwell-west-africa-invests-in-nigerian-mobile-money-service-paga/
MicroCapital Universe Profile: Acumen Fund
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Acumen+Fund
MicroCapital Universe Profile: Goodwell Investment
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Goodwell
MicroCapital Universe Profile: Omidyar Network
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Omidyar+Network
MicroCapital Universe Profile: Paga
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Paga
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